Case study: How Bank of China works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Bank of China proactively engages in communication with stakeholders from diverse sectors, including government entities, customers, shareholders, the environment, communities, and its employees. The bank conducts annual materiality analyses, inviting both internal and external stakeholder groups to evaluate identified social responsibility topics through questionnaires. By identifying and assessing these social responsibility issues, Bank of China identifies and reports on the topics that are important to both itself and its stakeholders.

How did Bank of China work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2023 Corporate Social Responsibility Report Bank of China reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

1. Green Finance:

Bank of China aligns closely with national objectives for reaching carbon peak and achieving carbon neutrality. Guided by the Group’s 14th Five-Year green finance plan, it continually enhances its “1+1+N” green finance policy framework. A comprehensive support package has been developed, addressing 13 areas, including improved assessment incentives, optimized management of economic capital costs, differentiated authorization, and personnel expense allocation, which together form the “four beams and eight pillars” of the green finance policy system. The Bank has issued the Guidelines for Investment in Industry Credit of Bank of China Limited (Version 2023) and the Management Plan for Industry Portfolio of Bank of China Limited (Version 2023). It identifies green and low-carbon industries, such as new energy vehicles, wind power, new energy storage, ecological protection, and environmental governance, as sectors with positive growth potential, enhancing support measures and actively directing credit investments toward these areas.

Aspiring to be the “preferred bank for green financial services,” the Bank is continually improving its green financial products and services. While increasing its support for green industries like clean energy, it also addresses the financial needs of traditional industries’ green transformation and upgrading. The Bank is committed to establishing the “CCB Green+” global brand and has developed five categories of green financial products and services, which encompass deposits, loans, bonds, consumption, and integrated services. It actively fosters the green and low-carbon transformation of the economy and society.

2. Inclusive Finance:

Bank of China consistently supports inclusive finance lending, leveraging online technology to enhance the quality and efficiency of its services, while providing comprehensive support in collaboration with the Group. Focused on improving people’s livelihoods and offering timely assistance, the Bank responds proactively to national strategies and establishes connections with inclusive customer groups across various fields, including specialized enterprises producing innovative products, entrepreneurship and employment initiatives, foreign exchange and trade, and “Sannong” (agriculture, farmers, and rural areas). By offering tailored products and exclusive services, Bank of China enhances the precision and effectiveness of its offerings. With inclusive finance serving as a vital source of support for diverse industries and households, the Bank ensures that financial resources are directed to critical areas and vulnerable links in the real economy, thereby driving development in small and micro-businesses.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

FBRH Principles for Responsible Banking (PRB) Assurance:

First class PRB assurance services: The result of solid, hands-on ESG/ Sustainability experience

• • • FBRH is a GRI Certified Training Partner (Global), IEMA Training Centre and a member of CPD.
    • FBRH builds trust. Over 200 reviews from top professionals from around the world demonstrate our ability to build strong, trusting business relationships.
    • FBRH possesses a unique skill set that combines ESG/sustainability certified training, experience in advisory services and report preparation, and ESG/sustainability report assurance.

The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Bank of China, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://pic.bankofchina.com/bocappd/report/202403/P020240328720914424945.pdf

Note to Bank of China: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.